Shadow Communications Minister Melissa McIntosh has warned that Australia is falling behind on the basics of communications sovereignty, urging the federal government to bolster Australian ownership and control over critical parts of the system or risk losing control of our digital future.
“It is time to lead,” Ms McIntosh said in an opinion piece this week. “Australia can’t afford to be a passenger when it comes to the security of our data, the future of our AI, or the integrity of our media.”
Ms McIntosh pointed to the growing reliance of Australian businesses on offshore data storage, saying this undermines sovereignty and leaves critical information vulnerable to foreign jurisdictions.
“More than half of our businesses are storing data overseas. That means foreign governments and foreign laws have a say over the security of Australians’ personal and business information,” she said.
While local data centres are expanding, Ms McIntosh warned they are highly energy-intensive and could account for nearly 8 per cent of Australia’s electricity consumption by 2030. “Cooling systems alone make up about 40 per cent of data centre energy use. This is a problem we can’t ignore,” she said.
Ms McIntosh’s concerns echo recent warnings by experts on data centres’ growing thirst which is prompting the US, Europe and others to introduce new rules on water usage.
Just as Gartner chief of research Daryl Plummer issued a warning that Australia cannot be guaranteed AI sovereignty without control over the AI chips that power the models, Ms McIntosh likewise echoes that Australia is also too reliant on overseas artificial intelligence systems.
“Right now, our companies are sending data offshore to be processed by foreign AI models, governed by foreign legal systems. That means we are losing control of our intellectual property and missing the opportunity to build sovereign capability here at home,” she said.
Ms McIntosh called for investment in Australian AI research and development, including foundation models that sit under Australian law.
The Shadow Minister said satellite services are another critical weak spot.
“Providers like Starlink and Amazon’s Kuiper are rolling out services here. They are expanding reach, particularly into the regions, but they are not Australian-owned or controlled. That is a sovereignty issue,” she said.
Optus has flagged plans to launch a sovereign low-earth orbit satellite capability by 2028, but Ms McIntosh argued more urgency is needed. “We cannot rely on foreign players to provide the infrastructure that underpins our communications, our defence, and our national security,” she said.
“These are not nice-to-have issues. They are central to our national security, our economy, and our democracy. If we fail to act, we will fall further behind, and we will not be the ones setting the rules,” Ms McIntosh said.
Her warning echoes a growing concern across industry and government about the risks of outsourcing critical digital infrastructure and services. With demand for data, AI and connectivity surging, decisions taken now will shape Australia’s digital sovereignty for decades.
“It comes down to leadership,” Ms McIntosh said. “We must make the hard decisions today so Australia can own its digital future tomorrow.”
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